If you are considering entering the Honduran market for a short-term or limited-scale commercial activity, or would simply like to get to know the business environment better before making a deeper investment, hiring staff via a professional employer organization (PEO) in Honduras can be a good option.
Because when you hire via a professional employer organization in Honduras — which can also be known as an employer of record (EOR) — you retain full control over those staff without having to go through company formation in Honduras. That means your initial financial and time commitments are limited, and you are able to quickly exit the market should you choose to.
Honduras has registered consistent and almost unbroken growth over recent decades, with gross domestic product (GDP) rising to reach $31.72 billion in 2022, while prosperity saw a corresponding rise, with gross national income (GNI) hitting $2,390 per capita, making the country a lower middle-income nation by World Bank standards. These are but a few reasons for hire via a professional employer organization in Honduras.
Professional Employer Organization in Honduras – Free Trade Zones
Honduras is party to a range of free trade agreements, both via agreements struck collectively with other Central American nations, as well as bilateral accords, providing businesses with preferential access to the likes of Canada, the European Union, Mexico, the United States, and the United Kingdom.
The country has a well-developed agricultural sector, with farmed products such as bananas, coffee, and fish key to the economy. Meanwhile, a growing industrial base sees the company produce considerable amounts of garments and electrical equipment for export, with many manufacturers based in the country’s free trade zones (FTZs). These FZAs make it beneficial to hire via a professional employer organization in Honduras
Free Trade Zones (FTZs) in Honduras are designated areas aimed at attracting foreign investment and promoting economic growth by offering various incentives to businesses. Established in the early 1970s, these zones have played a crucial role in boosting Honduras’ manufacturing and export sectors. The most prominent FTZ is the Puerto Cortes zone, located near the country’s main port, which facilitates easy import and export of goods.
Companies operating within these zones enjoy benefits like tax exemptions, duty-free import and export of raw materials and finished products, streamlined customs procedures, and simplified regulatory requirements. This business-friendly environment attracts foreign investors, creating employment opportunities for the local population and encouraging technology transfer and skills development. Continue reading to learn more concerning how to hire via a professional employer organization in Honduras.
If you are interested in doing business in this growing Central American economy, read on to understand what a professional employer organization in Honduras can do for you, as well as some of the advantages of choosing a PEO firm. Or go ahead and contact us now to discuss your business option.
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How can a professional employer organization in Honduras help you?
A professional employer organization in Honduras will essentially hire staff on your behalf via its locally established entity. That means that those workers will be considered employees of the PEO firm in the eyes of local authorities, but you will retain full control over their workloads and schedules.
That means you can enter the market in only the time it takes to find the right staff and exit in the time it takes them to serve their statutory notice period. When you contract the professional employer organization in Honduras to seek those staff out, using their established recruitment network, that means you can have workers in a couple of weeks, or even a few days, depending on the profile you are looking for.
Once those workers have been found, the PEO in Honduras will manage their payroll and guarantee compliance with all local norms, including timely payment of salaries and statutory benefits, as well as honoring leave and vacations.
While PEO services will come with a cost-per-employee hired, that will generally be significantly less than going through company formation and liquidation. This is another reason to hire via a PEO in Honduras.
Advantages of hiring via a professional employer organization in Honduras?
Hiring via a professional employer organization in Honduras comes with the following benefits:
Limited commitment: When you hire staff through a professional employer organization in Honduras, you limit your commitment to the market, allowing you the opportunity to get to know it better ahead of making a deeper investment, as well as to swiftly exit the market whenever needed.
Time-saving: Being able to secure local staff in just weeks or days, depending on their profiles, getting staff via a professional employer organization in Honduras can be a rapid and convenient process.
Established network: While the established recruitment network of your PEO in Honduras will help you to find staff quickly, you will also be able to tap into the local business connections the PEO firm has, which could be highly beneficial to your organization later down the road.
Building familiarity: By hiring via a professional employer organization in Honduras in Honduras, you have the opportunity to get to know the local market better, building familiarity with the regulatory regime, and understanding some of the foibles of doing business in the market, which will be useful should you decide to take your investment to the next level via company formation.
Reduced costs: The PEO fees you will incur will likely be considerably less than the costs associated not only with company formation, but also hiring staff to manage payrolls and oversee your statutory compliance in the country.
Legal representation: When you hire via professional employer organization in Honduras, you can count on the advice and support of their local legal experts, who will not only be able to represent your organization in front of authorities, but will also be able to provide you with ongoing advice on legislative changes that may affect your business.
Biz Latin Hub provides hiring & PEO services in Honduras
At Biz Latin Hub, our multilingual team of PEO & hiring experts is equipped to quickly help you find your ideal staff in Honduras. With our complete portfolio of back-office support options, including legal, accounting, company formation, and commercial representation services, we can be your single point of contact for entering the market and doing business in Honduras, or any of the other 17 countries around Latin America and the Caribbean where we are present.
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The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.